Retirement Committee Approves Expansion of Benefits for Active Educators
At the State Teacher Retirement Board’s March meeting, the board approved two benefit enhancements for active members. Over the past three years, the Board has provided benefits improvements totaling more than $3.8 billion to active and retired members.
The following approved changes will become effective on June 1, 2024.
- Under the current retirement eligibility regulations, Retirement benefits without reduction after 34 years of service have been made permanent.. The minimum requirement for unreduced benefits was previously scheduled to increase to 35 years of service in August 2028.
- qualifications Reduction of retirement allowance Reduced from 30 years of service to ~ 29 years of service. Currently, he has 5 years of service and his eligibility to retire at a reduced rate at age 60 remains the same.
These changes were reviewed by Shearon, the board’s actuarial consultant, who is required by law to determine whether proposed benefit changes would materially impair the financial health of the plan.
The Retirement Committee reviews benefits annually as part of a sustainable benefits enhancement plan. The Board and its actuaries intend to revisit the benefit plan no later than spring 2025 to assess whether additional benefit plan design changes are possible in accordance with the law in effect at that time.
Board changes eligibility for largest health insurance premium subsidy
STRS Ohio currently subsidizes a portion of the monthly costs for eligible retirement and disability recipients who participate in defined benefit plans or combined plans. The amount of premium subsidy is determined based on years of service. At its March meeting, the Retirement Committee approved changes to the maximum reimbursement eligibility for medical benefits.
Here are the changes:
- Members who retire after 30 years of service between August 1, 2023 and July 31, 2032 are eligible for the maximum medical benefit reimbursement. This will come into effect starting from the payment of benefits in January 2025.
- For members retiring after August 1, 2032, eligibility for the maximum subsidy will match eligibility for an unreduced pension (currently 34 years of service).
Consultant provides educational seminars
Board members participated in a one-day educational session following the March Board meeting with general and alternative investment consultants.
Board reviews STRS Ohio’s Enterprise Risk Management
Acting Executive Director Lynn Huber and Chief Actuary Brian Grinnell provided the Board with an update on the system’s enterprise risk management program outlining risks to STRS Ohio and mitigation strategies. Staff monitor and proactively manage key risks, weighing the likelihood of such events occurring against the potential financial impact. For example, a risk that can have a significant financial impact on a system is the implementation of a plan change that turns out to be unsustainable in the long term. Mitigation measures, such as having an external actuary review changes before implementation, reduce both the likelihood and impact of this risk. This ongoing effort allows organizations to stay ahead of potential threats and ensure the long-term security of their retirement plans.
Ballots for board elections will be mailed by April 5th.He fills one contributing member seat.
The 2024 Retirement Board Election will be held in April, and ballots will be mailed by a third-party vendor, Election Services Co., to all STRS Ohio members eligible to vote. In accordance with Ohio Administrative Code 3307-2-01, your ballot will be mailed to you by April 5th.
Two STRS Ohio members, Michelle Flannigan and Sandy Smith Fisher, have qualified to run for contributing member positions through a petition nomination process. Those eligible to vote in contributory member elections include all contributing members of STRS Ohio (excluding rehired retirees), individuals with deposits in STRS Ohio, and recipients of disability benefits. It is included.
Mailed ballots will include candidate information submitted by each candidate and instructions for voting online, by phone, or by mail. Voting closes at 4:30pm on Monday, May 6th. STRS Ohio will share election results after submitting results to the Board of Treasurers on Saturday, May 11th. Her four-year term in this seat begins on her 2nd. September 1, 2024.
Board members receive no compensation for their service on the board, but may be reimbursed for actual and necessary expenses incurred while serving on the board.
Retirement has been approved
The Retirement Committee approved the payment of retirement benefits to 72 active members and 60 inactive members.
